Reserves for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2020

Changes in the Card Member loans reserve for losses

The following table presents changes in the Card Member loans reserve for credit losses for the three months ended March 31:


(Millions)	2020		2019
Balance, January 1^(a)	$	4,027	$	2,134
Provisions ^(b)	1,876		525
Net write-offs ^(c)
Principal	(518)		(457)
Interest and fees	(107)		(92)
Other ^(d)	(42)		11
Balance, March 31	$	5,236	$	2,121

(a)Includes an increase of $1,643 million related to the adoption of the CECL methodology.

(b)Provisions for principal, interest and fee reserve components.

(c)Principal write-offs are presented less recoveries of $145 million and $124 million for the three months ended March 31, 2020 and 2019, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(31) million and $(15) million for the three months ended March 31, 2020 and 2019, respectively.

(d)Primarily includes foreign currency translation adjustments of $(42) million and $6 million for the three months ended March 31, 2020 and 2019, respectively.

Changes in the Card Member receivable reserve for losses

The following table presents changes in the Card Member receivables reserve for credit losses for the three months ended March 31:


(Millions)	2020		2019
Balance, January 1 ^(a)	$	126	$	573
Provisions ^(b)	597		253
Net write-offs ^(c)	(258)		(216)
Other ^(d)	(6)		(2)
Balance, March 31	$	459	$	608

(a)Includes a decrease of $493 million related to the adoption of the CECL methodology.

(b)Provisions for principal and fee reserve components.

(c)Net write-offs are presented less recoveries of $92 million and $91 million for the three months ended March 31, 2020 and 2019, respectively. Amounts include net (write-offs) recoveries from TDRs of $(7) million and $(4) million, for the three months ended March 31, 2020 and 2019, respectively.

(d)Primary includes foreign currency translation adjustments of $(5) million and $3 million for the three months ended March 31, 2020 and 2019, respectively.